Cathode materials: Lotte targets China's lead with LFP production
The Elec reports that Lotte Energy Materials will complete its LFP cathode pilot line in Iksan, North Jeolla Province, by December 2024. Mass production, starting at 1,000 tons per year, is set for the first quarter of 2025, with plans to gradually increase utilization.
Lotte Energy Materials is ramping up LFP cathode production by repurposing NCM cathode lines and converting legacy LMO facilities inherited from its Iljin Materials era.
Currently, LGES, Samsung SDI, and SK On have all initiated the commercialization of LFP batteries, with LGES and Samsung SDI being particularly proactive.
In July 2024, LGES secured a 39 GWh LFP battery deal with Renault, enough for 590,000 EVs, and supplied an 8 GWh energy storage system (ESS) to US renewable firm Terra-Gen LLC.
Samsung SDI is investing KRW1 trillion (approx. US$697.12 million) to build an LFP battery line and a dedicated ESS production line at its Ulsan plant, including a cathode material facility.
South Korea's push to break China's grip on LFP battery supply chain
Under pressure from Chinese competition, South Korean battery makers increasingly rely on Chinese materials, which are 20–30% cheaper. Except for high-end NCM components, most supply chains now depend heavily on China.
Producing LFP batteries depends on Chinese imports of cathode materials, lithium carbonate (Li2CO3), and lithium hexafluorophosphate (LiPF6), maintaining South Korea's reliance on China.
With large-scale investment, Lotte Energy Materials could establish a robust LFP cathode supply system by 2026, diversify its revenue, and reduce reliance on copper foil while expanding into solid-state and silicon anode materials.
LFP batteries, made from lithium, phosphorus, and iron, are cheaper but less energy-dense than NCM batteries, which require nickel, cobalt, manganese, and aluminum. Chinese firms currently dominate the market.
Since 2023, South Korea has committed KRW23 billion over four years, including KRW16 billion in support, to develop LFP batteries. Progress by Lotte Energy Materials could enhance South Korea's competitiveness and challenge China's dominance in the global LFP market.
China leads battery materials as South Korea's Posco Future M faces exit; Lotte eyes LFP mass production
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